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EURA Conversation #63
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Conversation #63
ABOLITION OF THE INCOME TAX SURTAX FOR FINANCING CROATIAN MUNICIPALITIES AND CITIES
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Surtax on income tax was introduced in Croatia in 1994. The main reason was to provide local authorities with more fiscal space in the acquisition of revenue. Cities with more than 40,000 inhabitants were given the authority to determine the surtax at a maximum rate of 30 percent on their share of the income tax, while the city of Zagreb as the capital could collect an income tax surtax on its share of the income tax up to 60 percent. The surtax on income tax was extended to all local self-government units in 2001. Until the change of the Law on Local Taxes (December 2023), municipalities and cities were limited in terms of the amount of the surtax rate they could levy [...] Keep reading...
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